The document outlines the policy guidelines and procedures for implementing the Grassroots Participatory Budgeting Process (GPB) for the preparation of the fiscal year 2016 budget and succeeding years. Key points include: - The GPB will ensure funding for local development needs identified at the local level are included in agency budget proposals. - It provides guidelines for participating agencies and local governments on the GPB process, responsibilities, and timelines for budget preparation. - The GPB will be implemented through two approaches - a regular process for non-NCDDP areas and an enhanced process integrating NCDDP for municipalities that have graduated from it. - The processes include civil society assemblies, workshops to formulate Local P

1. o F Fl C IA L
RELEASESION
NO
DBM-DILG-DSWD-NAPC Joint Memorandum Circular No. S
October 1, 2014
FOR : Heads of Departments (DA, DEPED, DOE, I)ENR, DOH, DILG,
DOLE, DSWD, DOT, DTI, NCIP and TESDA) and the
Administrator of NEA, All City/Municipal Mayors and Members
of the Sanggunian Panlungsod/Bayan, and All Others
Concerned
SUBJECT : POLICY GUIDELINES AND PROCEDURES IN THE
IMPLEMENTATION OF THE GRASSROOTS PARTICIPATORY
BUDGETING PROCESS (FORMERLY CALLED BOTTOM-UP
BUDGETING) FOR THE PREPARATION OF THE FY2016 BUDGET
AND SUCCEEDING YEARS
1. STATEMENT OF POLICY
In pursuit of attaining the Philippine Development Plan's goal of inclusive growth
and poverty reduction, and promoting good governance at the local level, the
Human Development and Poverty Reduction Cluster (HDPRC), through the
Grassroots Participatory Budgeting (GPB) Oversight Agencies, shall implement the
GPB Program, formerly called Bottom-up Budgeting, to ensure the inclusion of the
funding requirements for local development needs as they are identified at the
local level in the budget proposals of participating agencies.
2. PURPOSE
To provide participating agencies and local government units (LGUs) with the
policy guidelines, processes, responsibilities and timelines in the GPB approach to
be applied in the preparation of the FY 2016 National Expenditure Program and
the proposed budget in succeeding yers.
3. COVERAGE
This Circular shall cover the following participating agencies:
• National Government Agencies (NGAs):
Department of Agriculture (DA), including the Bureau of Fisheries and
Aquatic Resources (BFAR)
Department of Education (DepEd)
Department of Energy (DOE)
:1.

2. Department of Environment and Natural Resources (DENR)
Department of Health (DOH)
Department of the Interior and Local Government (DILG)
Department of Labor and Employment (DOLE)
Department of Social Welfare and Development (DSWD)
Department of Tourism (DOT)
Department of Trade and Industry (DTI)
National Commission on Indigenous Peoples (NCIP)
Technical Education and Skills Development Authority (TESDA)
. Government Owned and Controlled Corporations (GOCCs):
National Electrification Administration (N EA)
National Irrigation Authority (NIA)
• For Coordination and Oversight
Department of Budget and Management (DBM)
Dl LG
DSWD
National Anti-Poverty Commission (NAPC) Secretariat
National Economic and Development Authority (NEDA)
Office of the NAPC Vice-Chair for the Basic Sectors
. Beneficiaries
All cities and municipalities
4. DEFINITION OF TERMS
4.1. Basic Sector Organizations (BSOs) - refer to organizations of the
marginalized sectors of Philippine society, namely: farmers and landless
rural workers, artisanal fisherfolk, formal labor and migrant workers,
workers in the informal sector, indigenous peoples and cultural communities,
women, persons with disabilities, senior citizens, victims of calamities and
disasters, youth and students, children, cooperatives, and urban poor.
4.2. Grassroots Participatory Budgeting (GPB) - is an approach to preparing
the budget proposal of agencies, taking into consideration the development
needs of cities/municipalities as identified in their respective local poverty
reduction action plans that shall be formulated with strong participation of
basic sector organizations and other civil society organizations.
4.3. GPB Executive Committee - composed of the heads of the GPB oversight
agencies (DBM, DILG, DSWD, NAPC, NAPC Office of the Vice-Chair for Basic
2

3. Sectors, and NEDA). It is responsible for setting GPB policies and to oversee
the implementation of the program.
4.4. GPB Technical Working Group - composed of representatives of the GPU
oversight agencies. It shall provide the GPB Executive Committee with
technical support in formulating GPB policies and overseeing the
implementation of the program.
4.5. Civil Society Organizations (CSOs) - include non-government
organizations (NGOs), People's Organizations (POs), basic sector
organizations, cooperatives, trade unions, professional associations, faith-
based organizations, media groups, indigenous peoples movements,
foundations, and other citizen's groups which are non-profit and are formed
primarily for social and economic development to plan and monitor
government programs and projects, engage in policy discussions, and
actively participate in collaborative activities with the government.
4.6. Civil Society Assembly - an inclusive meeting of all CSOs, POs,
community/grassroots organizations facilitated by DILG at the municipal
level, with the support of DSWD and NAPC (where present), to gather,
analyze and share results of poverty situation and other local poverty data in
their locality, identify strategies to address poverty and present them to the
Local Development Council or the Local Poverty Reduction Action Team
(LPRAT), and local special bodies. CSOs shall also be oriented on their role in
local governance and select CSO representatives to the LPRAT.
4.7. Local Development Fund - equal to 20% of the Internal Revenue Allotment
to be used for local development projects as prescribed by DILG-DBM JMC
2011-1.
4.8. Local Poverty Reduction Action Plan (LPRAP) - the LG1J plan which
contains programs and projects collectively drawn through a participatory
process by the LGU with CSOs and other stakeholders, and which will directly
address the needs of the poor constituencies and the marginalized sectors in
the city or municipality.
4.9. Local Poverty Reduction Action Team (LPRAT) - the group to spearhead
the formulation and monitoring of the LPRAP.
Under the Regular GPB program, the LPRAT shall be composed of the
following members:
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4. Chairperson: Local Chief Executive (LCE)
Co-Chairperson: A CSO representative
Members:
Representatives from Government, to wit:
• Sangguniang Panlungsod/Bayan Member who is the
Chairperson of the Committee on Appropriation;
• All local government department heads such as the Planning
Officer, Budget Officer, Fishery and Agriculture Officer, Social
Welfare and Development Officer, Health Officer, and Public
Employment Service Office (PESO) Manager;
• Representatives of NGAs such as the DSWD municipal
Iinks/NCDDP area coordinators, the DILG City/Municipal Local
Government Operations Officer, the Schools District
Supervisor, Agrarian Reform Officer, DTI field officer,
City/Municipal Environment and Natural Resource
Management Officer (CENRO) and all other NGA
representatives; and
Representatives from CSOs (must be residents of the city or
municipality), that can come from the following
groups/organizations:
• Pantawici Pamilya Parent-Leaders recognized by DSWD;
• Leaders from DON organized Community Health Teams;
• Leaders of the Parent-Teacher Associations;
• Leader of CSOs accredited by LGUs;
• Leaders of CSOs accredited or recognized by any NGA;
• Leaders of a women's group;
• Leaders of a basic sector organization;
• Leaders of a basic sector organization recognized by NAPC;
• Leaders of other community or grassroots organizations;
• In cities/municipalities where Indigenous Peoples comprise
over twenty-percent (20%) of the population, one of the
elected representatives must come from the IP sector
A representative from a local business group or association
Elected officials, their immediate relatives (spouse, parent, sibling,
child), and LGU employees are ineligible to be elected as CSO
representatives.
4

5. Municipalities that have graduated from or are currently implementing the
NCDDP shall undergo the Enhanced GPB process, wherein the LPRAT shall
perform its functions as the technical working group of the Enhanced Local
Development Council (LDC). It shall be composed of the following members:
• 10 representatives from government (may come from
government members or observers of the Enhanced LDC)
• 5 Barangay Development Council Vice-Chairpersons selected
through the NCDDP
• 5 CSO representatives in the Enhanced LDC who are elected
during the CSO assembly
Elected officials, their immediate relatives (spouse, parent, sibling,
child), and LGU employees are ineligible to he elected as CSO
representatives.
The LPRAT under the Regular or Enhanced GPB Process shall always be
composed of an equal number of government (including the LCE) and non-
government representatives. All CSO representatives should be residents of
the city/municipality. The LPRAT should also be composed of at least 40%
women.en.
4.10. Enhanced Local Development Council - refers to the Local Development
Council (LDC) with an expanded membership to include the regular
members of the LDC with the addition of all the Vice-Chairs of the Barangay
Development Councils who are to be elected from among the NCDDP
community volunteers.
Chairperson: Local Chief Executive (LCE)
Vice-Chairperson: A CSO representative
Members:
Representatives from Government, to wit:
• All punong barangays in the city or municipality
• Chairperson of the Committee on Appropriation of the
Sangguniang Pan lungsod/Bayan
• District Representative or his/her representative
Representatives from Civil Society Organizations and
Communities, to wit:
• All Vice-chairs of the barangay development councils (elected
through the NCDDP)
5

6. • At least five CSO representatives elected by CSOs during the
CSO assembly
A representative from a local business group or association
Elected officials, their immediate relatives (spouse, parent, sibling,
child), and LGU employees are ineligible to be elected as CSO
representatives.
The Enhanced LDC shall be composed of at least 40% women.
All local government department heads such as the Planning Officer, Budget
Officer, Agriculture Officer, Social Welfare and Development Officer, Health
Officer and Peso Manager and representatives of national government
agencies (NGAs) such as the DSWD municipal links, NCDDP Area Coordinator,
the DILG City/Municipal Local Government Operations Officer, the school
district supervisor and Agrarian Reform Officer shall be invited to sit as
observers and resource persons in the Enhanced LDC.
4.11. National Community Driven Development Program (NCDDP)- refers to
the DSWD managed povery reduction program that seeks to empower poor
communities to have better access to quality basic services and to participate
in more inclusive local planning, budgeting, and implementation at the
barangay level.
4.12. National Poverty Reduction Action Team - the group that shall discuss and
address policy and implementation issues and provide guidance to the
RPRATs throughout the GPB process. It shall be chaired by DILG and
composed of representatives from all GPB oversight and participating
agencies.
4.13. Parent Leaders - Pantawid Pamilya Pilipino Program (4Ps) grantees chosen
by their co-grantees/fellow parents to lead a cluster of family-grantees. Their
role and function is to ensure that grantees comply with the conditions set by
the 4Ps program. They preside over meetings during community assemblies;
disseminate information and updates, follow-up/monitor commitment and
compliance of grantees with health and education conditions. They also act
as the bridge of the community in communicating to the municipal link
assigned in the area and to other stakeholders in the municipality or city.
4.14. Participating Agencies - refers to the NGAs (DA- including BFAR, DepEd,
DOE, DENR, DOH, DILG, DOLE, DSWD, DTI, DOT, NCIP and TESDA) and GOCCs
(NEA and NIA) through which GPB projects will be funded and implemented.
6

7. 4.15. Public Financial Management Improvement Plan - refers to the set of
programs/projects/activities (PPAs) that will he undertaken by the LGU to
address the areas in Public Financial Management (PFM) that need to be
further improved and/or sustained based on the assessment by the LGU
of the different critical dimensions of an open and orderly PFM system
provided under the PFM Assessment Tool for LGUs.
4.16. Regional Poverty Reduction Action Teams (RPRATs) - the group that
shall provide support and guidance to LGEJs throughout the GPB process and
monitor the implementation of the GPI3 Projects, composed of the following:
Chairperson: DILG Regional Director
Vice-Chairpersons: DBM Regional Director
NAPC Secretariat Representative
Members:
• Regional Directors of BFAR, DA, DENR, DOH, DEPED, DOLE, DSWD, DTI,
DOT, NEDA, NIA, NCIP, and TESDA
• Representatives from DOE and NEA
• All Provincial Planning and Development Officers (PPDOs) in the Region
• The provincial CSO permanent representative elected in the process
facilitated by NAPC and an alternate representative selected by the
permanent representative per province. This does not refer to the
elected members of the basic sector councils of NAPC at the national
level.
S. HARMONIZATION OF THE PLANNING PROCESSES FOR GRASSROOTS
PARTICIPATORY BUDGETING, NATIONAL COMMUNITY DRIVEN
DEVELOPMENT PROGRAMNCDDP, AND LOCAL DEVELOPMENT PLANNING
5.1. The harmonization of the planning processes being undertaken for GPB, NCDDP,
and Local Government Development Planning will be implemented in two
modalities.
5.1.1. The first mode will institutionalize the LPRAT as a committee of the local
development council. This will be referred to as the regular GPB process
which will be implemented in all cities and municipalities that have not yet
participated in the NCDDP. In situations wherein the local development
council does not meet regularly or is not functional, the LPRAT may be
constituted independently from the LDC.
7

8. 5.1.2. The second mode will integrate the GPB program into the processes of the
local development council. It will also integrate barangay level planning into
the city/municipal level planning process. This process will be referred to as
the Enhanced GPB process. It will he implemented in all two hundred
seventy one (271) municipalities that have graduated froni or are currently
implementing the NCDDP. The list of municipalities that shall undergo the
Enhanced GPB process can be found in Annex A.
5.2. Local government units that do not adopt the regular or Enhanced GPI3 process,
whichever is applicable, in their local development planning process will not be
eligible to participate in the GPB and NCDDP.
GUIDELINES FOR FY 2015 BUDGET PREPARATION AT THE LOCAL LEVEL IN
NON-NCDDP CITIES AND MUNICIPALITIES (REGULAR GPB PROCESS)
The following processes shall serve as the main components to implement GPB in
non-NCDDP cities and municipalities: 1) CSO assemblies, 2) LPRAP Workshops, 3)
Submission of the list of priority projects to the DILG Regional Office (RU), 4)
Consolidation of the projects by the DILG RO, 5) Validation of projects by the
RPRAT and the NPRAT, 6) Submission of the revised list of priority projects
together with a Sanggunian Resolution to the DILG RU, 7) Integration of the LGIJ
projects in the budgets of participating agencies, 8) Provision of LGU Counterpart
and 9) Project Implementation.
6.1. Announcement of the ('SO Assembly. The schedule of the CSO assembly must be
announced through invitations to CSOs, posters in the city/municipal hall and
through the DILG website at least two weeks before the CSO assembly. The list
of CSOs invited and information about the person/office who may be contacted
by other local CSOs who wish to be invited shall also be posted in the municipal
bulletin board of the city/municipal hall at least two weeks before the assembly.
6.2. Conduct of Civil Society General Assembly. DILG, through the assistance of NAPC
and DILG, will convene the general assembly of CSOs at the city/municipal level
to select CSO representatives in the LPRAT. To ensure broad participation of
CSOs, NAPC and DSWD shall assist DILG in convening the general assembly. The
LCE and/or City/Municipal Planning Development Coordinator (C/MPDC) shall
also be invited to observe in the CSO assembly.
6.2.1. Orientation. DILG shall give an orientation to CSOs on local governance,
highlighting the role of CSOs in Local Development Councils (LDCs) and
Local Special Bodies (LSBs), as well as explain the rationale for and process
of GPB.
6.2.2. Election of LPRAT representatives. The CSOs shall independently select the
organizations that will represent CSOs in the LPRAT. Elected officials, their

9. immediate relatives (spouse, parent, sibling, child), and LGU employees are
ineligible to be elected as CSO representatives.
• The assembly will also elect the LPRAT co-chair and two other CSO
signatories in the LPRAP from among the elected representatives.
They must include a Pantawid Pamilya parent leader, a basic sector
organization representative and a CSO member of the local
development council, as detailed in Section 6.2.3.
• Local government officials, including but not limited to the LCE or
the C/MPDC, shall not influence the election of the CSO
representatives during the CSO assembly
• The number of CSO representatives in the LPRAT shall equal the
number of government representatives.
6.2.3. Composition of the CSO signatories of the LPRAP. The Co-chair of the
LPRAT (or the vice-chair in the case of Enhanced LDCs) and the two other
CSO representatives who will sign the LPRAP must include:
• a Pantawid Pamilya parent leader, the selection of whom shall be
facilitated by the l)SWD municipal link (lithe city or municipality has
no Pantawid Pamilya beneficiaries, a Parent Teacher Association
representative can serve as an alternative);
• a representative from a basic sector organization or cooperative of
any of the following sectors: farmers and landless rural workers,
artisanal fisherfolk, formal labor and migrant workers, workers in the
informal sector, indigenous peoples and cultural communities,
women, persons with disabilities, senior citizens, victims of calamities
and disasters, youth and students, children, or urban poor, the
selection of which shall be facilitated by the LPRAP facilitator to be
identified by DILG; and
• a CSO representative who is a member of the city or municipal local
development council.
6.2.4. Reporting on the status of GPB Projects. The DILG City or Municipal Local
Government Operations Officer (MLGOO) shall report on the status of the
GPB Projects for the current and previous years during the CSO Assembly.
6.2.5. Poverty Situation Analysis. After the selection of representatives, the
assembly should review, validate and analyze social and economic data of
the city/municipality and propose solutions to its concerns and problems.
The City/Municipal Planning and Development Coordinators (C/MPDC),
with the local finance committee (LFC) and other department heads of the
LGU, will provide technical assistance to the CSU assembly in doing the local
poverty situation analysis. These include presentation of updated,
consolidated, relevant social and economic data.
9

10. 6.3. Conduct of LPRAP Workshop. The conduct of the LPRAP workshop shall be
guided by modules which will be provided by DILG to all MLGOOs, GPB
Community Mobilizers and MPDCs.
6.3.1. The LGU shall announce the schedule of the LPRAP workshop through an
invitation to the members of the LPRAP sent at least two weeks before the
scheduled workshop.
63,2. The LCE shall constitute or reconstitute the LPRAT based on the members
as identified in Section 4.9 and based on the process undertaken pursuant
to Section 6.2. The LCE must ensure the active participation of the elected
CSO representatives in the LPRAT during the LPRAP workshop.
6.3.3. The RPRAT shall provide technical assistance to the LPRATs in the
formulation of the LPRAP. The DILG RU shall ensure that at least one
member of the RPRAT or representatives of participating agency regional
offices will participate in each LPRAP Workshop.
6.3.4. The GPB Project Management Office (PMO), housed within DILG, may
also deploy facilitators in coordination with the RPRAT to assist selected
LPRATs in the conduct of the LPRAP workshop to ensure that an adequate
poverty analysis be done before identifying poverty reduction strategies.
6.3.5. The C/MPDC with the assistance of the local finance committee (LFC) and
other department heads of the LGU, shall present the poverty situation of
the city/municipality for validation of the LPRAT. Updated
data/information should be made accessible to the LPRAT for validation
and discussion.
6.3.6. The LPRA'I' shall review previously identified strategies and priority
poverty reduction projects and update the strategies to be undertaken by
the LGU and other stakeholders, including the national agencies, and
incorporate the same in the LPRAP. Identification of strategies should be
based on the results of the poverty situational analysis. The LPRAT shall
discuss and identify major causes of poverty in the area and specify how
these can be addressed.
6.3.7. The LPRAT shall also identify priority poverty reduction projects through
a consensus among its members. If consensus cannot be reached, the
decision will be made through a majority vote. The list of priority projects
will be submitted to the national government for funding consideration in
the next budget to be proposed to Congress, using the format provided in
Annex B.
6.3.8. Only projects that can be implemented through programs in the GPB
Menu of Programs (see annex D) can be proposed for funding by the
national government. However, outside the menu projects can be proposed
as a LGU implemented project funded through the LGU counterpart for GPB.
10

11. 6.19. All proposed projects must consider gender-responsiveness and gender
equality in their design and implementation.
6.3.10. Projects below five hundred thousand pesos cannot be proposed for
funding by national government. Such projects can be proposed as LGU
implemented projects to be funded through the LGIJ counterpart for GPB.
6.3.11. Total funding for proposed priority poverty reduction projects requested
by each city and municipality from national government shall not exceed
the cap set for each of them as indicated in Annex A.
6.4. Submission of the List of Priority Poverty Reduction Projects. The list of priority
poverty reduction projects duly endorsed by the LPRAT shall be submitted to
the RPRAT through the DILG RO on or before November 15.
6.4.1. The submission should include:
• Cover letter signed by the city / municipal mayor;
• List of Priority Projects to he considered for funding in the next
proposed budget, using the attached format (Annex B) and with all
pages signed by the 3 CSO representatives identified in Section 6.1.3;
and
• Project brief for each proposed project (using template in Annex C)
• Report on compliance with the required participatory processes
under GPB as detailed in Section 6.4.3
6.4,2 The list of priority projects that will be submitted must be signed by the
three elected CSO members of the LPRAT on every page.
6.4.3 The report on compliance with the required GPB participatory processes
shall include the following documents:
CONDITION
Conduct of CSO assembly
and election of CSO
representatives
Conduct of LPRAP
workshops
DOCUMENTARY EVIDENCE
- Attendance sheet of CSO assembly;
- Photo of participants of CSO assembly;
- Highlights of the CSO assembly;
- Documentation of Election Results
-LGU report on status of GPB projects,
including LGU implemented projects
- Attendance sheet of the LPRAP
workshop
- Photo of LPRAP workshop participants;
- Minutes of the LPRAP workshop
6.4.4 Both printed and electronic copies of these documents should be
submitted to the DILG RO. Electronic copies should be submitted through
e-mail. The list of priority projects must be submitted in both PDF and
word/excel format.
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12. 6.5. Consolidation of the List of Priority Poverty Reduction Projects by Region - the list
of priority poverty reduction projects will be consolidated by the D1LG RO,
which will then provide the consolidated list to all members of the RPRATs and
to DBM. Copies of the list of priority projects, including all attachments
submitted by the LPRATs should also be forwarded to DBM and NAPC by
November 30. In addition, copies of the report on compliance with required
GPB participatory processes shall also be forwarded to NAPC for review and
validation.
6.6. Validation, review and revision of Priority Poverty Reduction Projects
6.6.1. The DILG Regional Director shall convene the RPRAT to review and
validate the proposed projects. The RPRAT shall also identify the
appropriate implementing agency for each project.
6.6.2. The RPRAT shall meet with the duly authorized LPRAT representatives
equal number of government and CSO representatives) to inform them of
the need to replace proposed projects which have not been accepted by the
RPRAT.
6.7. Submission of revised list of priority projects. The LPRAT shall submit its revised
list of priority poverty reduction projects, with all pages signed by the 3 CSO
representatives identified in Section 6.1.2, together with project briefs for each
project and the highlights of the LPRAT meeting, to the DILG RO on or before
January 16. The submission shall include a Sangguniang Panlungsod/Bayan
Resolution adopting the revised list of priority projects. A sample resolution is
attached as Annex E.
6.7.1. The RPRAT must ensure that rejected projects are replaced before
submission of the final list of GPB Projects to DBM and the Regional
Development Council (RDC].
6.7.2. The RPRAT, through the DILG RO, shall then submit the revised list of
validated GPB Projects to DBM and the RDC on or before January 21
6.8. Integration of the LGU projects in the budgets of participating agencies. The ACOs
shall review and integrate in their proposed budget for all GPB projects that
have been submitted to them by DBM.
6.8.1. DBM shall consolidate all the submissions of the RPRAT and forward it to
all participating Agency Central Offices (ACOs)on or before January 31
6.8.2. All agencies should ensure that GPB Projects are not duplicated in their
regular programs, in the PAMANA program or in the ARMM Stimulus Fund,
6.8.3. DBM shall provide all RPRATs a copy of the list of GPB projects which has
been incorporated into the proposed budget.
6.9. Provision of LGU Counterpart. See Section 8.

13. 6.10. Project Implementation. See Section 9.
7. GUIDELINES FOR BUDGET PREPARATION AT THE LOCAL LEVEL IN NCDDP
CITIES AND MUNICIPALITIES (ENHANCED GPB PROCESS)
Municipalities that have graduated from or are currently implementing the NCDDP
(see Annex A for the list of municipalities) will have to follow the Enhanced GPB
Process. Under this process, the following modifications are made to the regular
GPB Process: a) Integration of Participatory Barangay Development Planning and
b) Enhancement of the composition of the Local Development Council. The
detailed steps for the Enhanced GPB Process is provided under Annex F.
7.1. Election of harangay volunteers. DSWD through its NCDDP program shall
facilitate the election of a volunteer in each barangay during a barangay
assembly to serve as the Barangay Development Council Co-chair and serve as a
member of the enhanced Municipal Development Council. The barangay
development council co-chairs shall also be invited by DILG and DSWD to attend
the CSO assembly.
7.2. Participatory Barangay Development Planning. A parallel barangay development
planning process shall be undertaken through the NCDDP. DSWD shall facilitate
the conduct of participatory barangay development planning in all barangays in
municipalities with NCDDP.
7.3. Integration of the LPRAT into the Enhanced Local Development Council (LD(
structure. The LCE shall convene the Enhanced LDC to approve the LPRAP, the
Comprehensive Development Plan (CDP), Local Development Investment Plan
(LDIP), Executive-Legislative Agenda (ELA) and Annual Investment Plan (AlP),
and identify the priority poverty reduction projects to be funded by GPB
NCDDP and the LGU. To make the planning more manageable, the Enhanced
LDC shall constitute an LPRAT to serve as its technical working group, which
shall undertake the formulation of the plans and present it for the approval of
the Enhanced LDC.
7.3.1. The Enhanced LDC shall include the vice-chairpersons of all barangay
BDCs, who are selected from the NCDDP community representatives in
the Barangay Development Council. Its composition shall be consistent
with Section 4.10. The Enhanced LDC shall have the following structure:
13

14. ri P)C/ DepartineW
H. di
AIM
7.3.2. The Enhanced LDC shall form an LPRAT to serve as its technical working
group. The LPRAT shall draft the plans, including the identified priority
poverty reduction projects. It shall be composed of 20 members of or
observers in the LDC:
• 10 coming from government (may include observers in the LDC),
• 5 from the BDC Vice-Chairpersons, selected by them from among
themselves, and
• 5 from the CSO representatives elected during the CSO assembly.
7.3.3. The Vice-Chairs of Barangay Development Councils identified through
NCDDP shall be added to the membership of the existing LDC.
7.4. Annex F provides a step-by-step explanation of the Enhanced GPB Process.
8. COUNTERPART REQUIREMENTS
8.1. LGUs must provide a cash counterpart for the GPB program equal to a
percentage of their current Local Development Fund (LDF). This must be
sourced from LGU funds.
8.2. For LGtJs which are also part of the NCDDP program, the GPB and the NCDDP
program will have a common and combined cash counterpart requirement.
8.3. The percentage shall be based on the proportion of the GPB and NCDDP
funding to 20% of the LGU Internal Revenue Allotment, or the LDF, as follows:
Reauired Cash Coun
Municipalities (Based on proportion of
GPB and NCDDP funding to LDF)
Up to 100% of the LDF 10% of the LDF amount
Over 100% up to 150% of the 15% of the LDF amount
LDF
Over 150% of the LDF - 20% of the LDF amount
All Cities 40% of the Budget Cap
'The required counterpart for each LGUs is detailed in Annex A.
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15. Sample Computation:
Municipality A (part of NCDDP1
GPB Budget Cap Allocation P15 Million
NCDDP Grant 5 Million
Total Funding P20 Million
Local Development Fund P15 Million
Proportion of GPB and NCDDP Funding to LDF:
= (GPB Cap + NCDDP) / LDF
= 20 Million / 15 Million
= 133%
Required Cash Counterpart:
= 15% of the LDF amount
= 15% of 15 Million
= 2.25 Million
Municipality B (not uart of NCDDP
GPB Budget Cap Allocation P15 Million
NCDDP Grant 0 Million
Total Funding P15 Million
Local Development Fund P 8 Million
Proportion of GPB and NCDDP Funding to LDF:
= (GPB Cap + NCDDP) / LDF
= 15 Million / 8 Million
= 187.5%
Required Cash Counterpart:
= 20% of the LDF amount
= 20% of 8 Million
= 1.6 Million
CitvA
GPB Budget Cap Allocation: P30 Million
Required Cash Counterpart:
= 40% of Budget Cap
= 40% of P30 Million
= P12 Million
8.4. For LGUs not included in the NCDDP, the counterpart will be solely based on
their GPB budget cap allocation.
8.5. For LGUs currently part of the NCDDP program, additional non-cash
counterpart shall be required from the Local Government Units as provided for
in the NCDDP Community Finance Manual.
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16. 8.6. The GPB Counterpart Funds from the LGU shall be added to the funding
available for GPB Projects. Its use shall be determined by the LPRAT or the
Enhanced LDC, whichever may be applicable, provided that funds for
monitoring and evaluation of GPB Projects and the conduct of quarterly LPRAT
or Enhanced LDC meetings shall be included.
8.6.1. Counterpart funding need not be allocated on a per project basis.
Identified counterpart funds may be used to fund projects that are 1000/0
funded by the local government unit.
8.6.2. National programs that require a counterpart, as indicated in the Menu of
Programs, shall be included as part of the LGU counterpart.
8.7. The counterpart to be provided must be sourced from LGU funds. This shall
be formalized and included by the LGU in its AlP and annual budget.
8.7.1. The LGIJ shall submit a copy of its AlP and annual budget to the DILG
Regional Office to provide evidence that the required counterpart funding
has been included in the LGU budget on or before the end of the calendar
year.
8.7.2. Failure to provide counterpart funds in the Appropriation Ordinance
authorizing the local Annual Budget will result in the non-release of the
national government funding for the city or municipality's GPB projects.
8.8. Specific guidelines governing the computation, mobilization, use and
accounting and reporting of Local Counterpart Funds under the Enhanced GPB
process shall be issued by the DSWD within 30 days of the issuance of these
guidelines.
8.9. Projects to be funded out of the local government counterpart should be
consistent with the DILG-DBM Joint Memo Circular 2011-1 dated April 13, 2011
on the Amended Guidelines on the Appropriation and Utilization of the 20% of
the Annual Internal Revenue Allotment for Development Projects.
8.9.1. The cost for the operation of the LPRAT or the Enhanced LDC, vis-a-vis its
role in crafting the LPRAP and monitoring/evaluating its implementation
(including meeting and travel costs) may be shouldered through the LGU
counterpart and sourced from its general fund.
9. PROJECT IMPLEMENTATION
9.1. Funding for both NGA and LGU-implemented GPB Projects in a city or municipal
government shall only be released if the LGU achieves the following:
9,1,1. Pass the Good Financial Housekeeping component of the Seal of Good
Local Governance under the most recent assessment;
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17. 9.1.2. Substantial accomplishment in the implementation of the PFM
Improvement Plan as determined by DBM;
9.1.3. Required GPB counterpart has been provided in the LGU Annual Budget;
and
9.1.4. Submission of proper financial and physical accomplishment reports to
the concerned NGAs for GPB projects in previous years.
9.1.5. Compliance with the intent of GPB for meaningful participation of CSOs
and communities in GPB. This includes:
• conduct of CSO assembly and election of CSO representatives in the
LPRAT or in the Enhanced LDC,
• conduct of participatory planning through the LPRAP workshops (or
through Enhanced LDC meetings), and
• conduct of quarterly LPRAT or Enhanced LDC meetings to report on the
status of GPB Projects
9,2. Funding under agencies where LGUs have unliquidated cash advances beyond
the reglamentary period will also not be released and the identified GPH
Projects will not be implemented.
9.3. LGUs that poorly implement their GPB Projects in the previous year, as
determined by the RPRAT based on guidelines that will be subsequently issued,
will not be provided funding for their priority projects under the GPB in the
current year.
10. ROLES AND RESPONSIBILITIES
10.1. The LCE shall:
10.1.1. Organize and convene the LPRAT or the Enhanced LDC;
10.1.2. Make available information and data sets for poverty situation analysis
including but not limited to Community-Based Monitoring System (CBMS),
Field Health Service Information System, National Household Targeting
System for Poverty Reduction, CDP, LDIP, ELA and AlP;
10.1.3. Ensure the conduct of LPRAP workshop/s or Enhanced LDC meetings
with strong CSO and basic sector participation and ensure that only project
proposals included in the LPRAP and prioritized by the LPRAT are
submitted to the RPRAT;
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18. 10.1.4, Ensure the conduct of quarterly LPRAT or Enhanced LDC meetings; and
10.1.5. Mobilize the LGU to comply with the requirements of the DILG's Seal of
Good Housekeeping, undergo the PFM assessment (if not yet undertaken),
and develop and implement a PFM Improvement Plan.
10.2, The LPRAT (for the Regular GPB Process) shall:
10.2.1. Organize and facilitate the conduct of a Local Poverty Reduction Action
Planning workshop for the formulation of the LPRAP and the identification
of priority poverty reduction projects;
10.2.2. Agree on a list of priority poverty reduction projects based on a thorough
poverty analysis and submit the LPRAP to the RPRAT using the template
provided in Annex B; and
10.2.3. Conduct quarterly meetings to monitor the status of the approval and
integration of the priority poverty reduction projects into the budgets of
participating agencies and monitor the implementation and status of the
projects.
10.3. The Enhanced LDC (for the Enhanced GPB Process) shall:
10.3.1. Organize and facilitate the conduct of planning workshops for the
formulation or the updating of the CDP, LDIP, and identification of priority
poverty reduction projects;
10.3.2. Create an LPRAT to serve as its technical working group in the initial
preparation of the CDP, LDIP and identification of poverty reduction
projects;
10.33. Agree on a list of priority poverty reduction projects based on a thorough
poverty analysis and submit the LPRAP to the RPRAT using the template
provided in Annex B-2; and
10.3.4. Conduct quarterly meetings to monitor the status of the approval and
integration of the priority poverty reduction projects into the budgets of
participating agencies and monitor the implementation and status of the
projects.
10.4. The Sangguniang Panlungsod/Bayan shall:
10.4.1.Accredit all local CSOs, including those recognized by any national
government agency such as Basic Sector Organizations recognized by NAPC
and volunteer groups in the NCDDP program; and
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19. 10.4.2. Review and adopt the List of Priority Poverty Reduction Projects to be
submitted to the RPRAT. It shall pass a Sanggunian Resolution using the
prescribed form (see Annex E) endorsing the list of priority poverty
reduction projects.
10,5. The CSO members of the LPRAT or the Enhanced LDC shall:
10.5.I. Actively participate in the formulation of LPRAP and identification of the
priority poverty reduction projects;
10.5.2. Through their elected representatives identified in Section 6.1.2, endorse
the LPRAP and list of priority poverty reduction projects for approval of the
Sangguniang Panlungsod/Bayan;
10.5.3. Advocate for the local scinggunian's adoption of the list of priority poverty
reduction projects, when necessary; and
10.5.4. Remind and demand that the LCE convene the quarterly meeting to
report on the status of the implementation of the priority poverty reduction
projects so that they can monitor the implementation of the projects. They
may also undertake monitoring activities independent of the LGIJ.
10.6,Thc Area Coordination Teams of NCDDP shall:
10.6.1. Facilitate barangay level processes for municipalities undertaking the
Enhanced GPB Process;
10.6.2. Conduct orientation workshops for the LPRAT of focus
municipalities/cities on the GPB process; and
10.6.3. Assist DILG in the municipal level planning activities, including in the
preparation and conduct of the Enhanced LDC and LPRAT meetings and
ensure the active participation of the BDC Vice-Chairs in these meetings;
and
10.7.The RPRAT shall:
10.7.1. Require each member agency to assign a permanent and alternate
representatives to the RPRAT;
10.7.2. Conduct orientation workshops for the LPRAT of focus
municipalities/cities on the GPB process which will discuss the following:
• Rationale for GPB;
• GPB guidelines;
• Tools for LPRAP development; and
• Menu of Programs for GPB, including technical requirements for
projects by participating agencies;
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20. 10.7.3. Provide technical assistance in the development of LPRAPs and monitor
the activities of the LGUs and the progress of submission of project
proposals and LPRAPs;
10,7.4. Consolidate, review and validate the proposed LPRAPs submitted by the
LPRATs and ensure that proposed projects do not exceed the LGU budget
cap;
10.7.5. Inform the RDCs and the concerned LCEs on the final LPRAP projects for
the focus cities and municipalities which are included in the budget
proposal of the participating agencies; and
10.7.6. Monitor and evaluate the performance of the LPRAT and the
implementation of GPB Projects. It shall give recommendations or
actions to be taken by LRPATs or Enhanced LDCs which are not
responsive or non-compliant with this JMC.
10.8.The GPB-PMO (DILG) shall:
10.8.1. Lead the conduct of regional orientation for the RPRATs on the
formulation of LPRAPs as necessary;
10.8.2. Monitor the performance of the LPRATs and the progress of the
implementation of GPB Projects and undertake internal evaluation of the
program for program management purposes.
10.9.The NAPC shall:
10.9.1. Create a helpdesk at the national level for the purpose of direct
communication between the local community and NGAs/GOCCs with regard
to LPRAP implementation status and issues;
10.9.2. Establish a grievance and redress system where various stakeholders can
communicate their concerns regarding the implementation of GPB;
10.9.3. Monitor LGU compliance with the requirements for participatory
processes in crafting the LPRAP
10.9.4. Facilitate the overall external evaluation of the GPB program.
10.10. The Central Offices of Participating Agencies shall:
10.10.1. Incorporate the list of priority projects provided by DBM in their
proposed budget;
10.10.2. Submit to DBM, the department's budget proposal which includes the
project proposals from the focus cities/ municipalities by the deadline set
byDBM.
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21. 10.10.3. Give feedback to the RDC and the LGUs on the status of the proposals
through their Agency Regional Offices (AROs); and
10.10.4. Monitor the implementation of GPB projects under their respective
agencies.
10.11.The GPB Executive Committee shall set GPB policies and oversee the
implementation of the program.
10.12. The NPRAT shall:
10.12.1. Create new programs to address unmet needs as identified through the
GPB Process; and
1012.2. Discuss and provide recommendations on policy and implementation
issues that may arise.
11. FUND SOURCE
Funding for the implementation of approved GPB Projects shall be incorporated by
the participating agencies and DBM into the National Expenditure Program.
12. GPB CALENDAR
Participating agencies and LGUs are enjoined to adhere to the GPB budget
preparation calendar as specified in the table below.
Activity Responsible Party Period
For NCDDP areas only:
Selection of BDC Vice-Chairs and DSWD Area Coordination To be set by
Barangay-level poverty situational Teams for NCDDP DSWD
analysis and conduct of barangay
assemblies
I Orientation of the RPRATS DILG PMO As needed
2 Conduct of Civil Society Assemblies September
3 Orientation workshops for LPRATs RPRATS October 1-15
4 Conduct of LPRAP Workshops 7 LGIJs October 16-
Enhanced LDC and LPRAT November
meetings 14
21

22. Activity I Responsible Party I Period
5 Submission of LPRAPs and list of LGUs
priority project / LDIPs to the
DILG RO
6 Convening of RPRAT to validate RPRAT
LGU proposals; clarify proposals
with LGUs if necessary
7 Provide a copy of the consolidated RPRAT
list of proposed priority
projects/LDIPs and required
supporting documents to DBM and
NAPC
8 Inform LPRATs of rejected project RPRAT
for replacement
9 Validation workshop to replace RPRATs
projects with LPRATs
10 Submission of consolidated revised LGUs
LPRAPs/ LDIP to RPRATs together
with Sangunian Resolution and
highlights of LPRAT meeting to
revise LPRAPs
11 Submission of consolidated list of RPRATs
validated projects to DBM
12 Endorsement of proposed GPB DBM
Projects to participating agencies ______________________________
13 Integration of GPB Proposals with DBM and Agency Central
NGA budget proposals in the NEP Offices
14 Submission of agency proposed Participating agencies
budget to DBM
November
15
November
16-
December
15
November
30
December
20
December
21- January
15
January 16
January 21
January 31
February 1-
March 31
To be set by
DBM
3. GOVERNING CLAUSE. Issues arising from the implementation of this Circular shall
be resolved by the oversight agencies of the program.
14. REPEALING CLAUSE. All provisions of existing issuances that are inconsistent with
this Circular are hereby repealed/amended accordingly.
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23. IS. EFFECTIVITY. This circular shall take effect immediately.
For compliance.
I fl
NJULSOL1MAN
JOSE EJiSRO M. ROCA RA
Secretary, DSWD
Lead Convenor, NAPC
-
FLORENCIO B. ABAD
Secretary, DEIM
Secreta , DILG
!II1ItIIIIIIIIIThIIllh!I
QILG-OSFCOUTGOIN6 14-03808
I.,
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